Sometimes the government intervenes to set the price for a product or service to make it fairer for the consumer or for the producer. What would be the benefits and costs for the government setting the price of goods?

Instructions

• Read the article about Price Floors and Ceilings
• Watch the two videos.
• Complete the Critical Thinking Activity.
• Critical Thinking Activity
• How should the price be set in the market?
• Should government play a role in setting the price or should the "invisible hand" (supply and demand) set the price?
• Give three reasons for your answer share what the tradeoff would be for consumers and producers given your decision.